Which of the Following Statements Is True Regarding the Characteristics

question 49

Multiple Choice

Which of the following statements is true regarding the characteristics of good information?

• A)Information needs to be more than just barely sufficient for the purpose for which it is generated.
• B)Information must hold an appropriate relationship between its cost and value.
• C)Accurate information can be based on incomplete data.
• D)Good information is just recorded facts and figures.

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Definitions:

Unsystematic Risk

The risk of price change due to the unique circumstances of a specific security, as opposed to overall market movement, which can be diversified away.

Statistical Tests

Analytical procedures used to determine the significance of collected data by comparing it against a predetermined threshold or value.

Systematic Risk

The risk inherent to the entire market or market segment, which cannot be mitigated through diversification.

Beta Value

A measure of a stock's volatility in relation to the overall market, indicating the level of risk associated with the stock.